PRESIDENT Jacob Zuma announced in his state of the nation address on Wednesday that new discussions with the taxi industry over the Bus Integrated Rapid Transit (BRT) system will begin next week.

This came after the wise Msholozi, in an election campaign designed to placate each and everyone, promised operators to put a temporary halt to the implementation of the BRT to "deal properly with the concerns of the industry".

According to Thabisho Molelekwa, a spokesperson for the SA National Taxi Council (Santaco), these concerns include the fact that the BRT is an untested system, while taxi transport is "a century-old and tested modal operation".

The BRT will also worsen tensions within the taxi industry and put many operators out of business, he added.

Furthermore, the industry reckoned it burnt its fingers before when it consented to go ahead with the recapitalisation programme, and will not cheerfully accept government's word this time around that the BRT will actually benefit the industry.

Finally, Santaco took exception to the fact that government has the cheek to tell taxi owners what role they will play within the industry.

"It's a precondition, not a negotiation, and we will not accept it," said Molelekwa.

Harsh words, I hear you say.

Little love lost with the public

And, you may ask, why should government, or anybody else for that matter, need to consult with the taxi industry at all when it tries to put plans in place that will surely alleviate the gridlock on urban roads?

Also, why can't taxi owners accept that they are subject to the same (harsh) market forces as other businesses? After all, other entrepreneurs have to accept that demand for their products decreases when consumers have the option to make use of alternatives.

Anyway, when was the last time taxis did anything to endear themselves to the public?

Surely the taxi industry is one of the top contenders for the maintaining the worst public relations in South Africa.

However, anyone who supports the principle that governments shouldn't prohibit private enterprise growth and that the private sector is better suited than the state to deliver services efficiently, needs to take heed of what Santaco is saying.

The taxi industry was built by entrepreneurs; people who recognised a strong demand for transportation that is more accessible than buses or trains, which will also take them closer to their destination.

I was not around so I can't say for sure, but I don't think black entrepreneurs in the 1960s and 1970s had many other options available to advance financially. This industry provided, and still does, an opportunity for self-employment.

It has never received subsidies from any government, and yet the industry is used daily by 63% of all commuters. According to Santaco's figures, it generated R16bn in revenue in 2008. One reason for its success is the fact that it offers cheap transport.

Call for compromise

Also, nobody can respond to a general transport need faster than the taxi industry. "A taxi is the only mode of transport that can immediately do a route and make it work," said Molelekwa. "We'll be the first to go to a new township or suburb."

Government can also not object to the taxi industry's resistance to the BRT, after its easier acceptance of the recapitalisation programme, which became a breeding ground for distrust and conflict within the industry.

One of the most disputed aspects of the new programme is that operators will be forced to apply for route-specific permits. These permits will only be valid for a certain period.

"If this permit is the essence of my business, how can you (government) from time to time decide if I may continue with it or not?" asks Molelekwa.

Santaco does not have a workable solution to the impasse. According to Molelekwa, it demands a stake - even entire ownership - in the BRT.

"We're talking about the whole value chain, including construction, infrastructure and information technology," Molelekwa said, adding that the industry's lack of skills in these areas does not necessarily pose a problem.

Unfortunately, the problem for government is that the BRT will not work without the co-operation of the taxi industry. Taxis will be essential to feed commuters to and from the BRT routes.

For this to become a reality, government will have to accept some conditions from the industry.